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Russians Buy 1 Million Ounces of Gold Bars In August

Russia's gold reserves rose to 42.4 million troy ounces as of September 1 compared with 41.4 million troy ounces a month earlier, the Russian central bank announced on Friday.

The monthly accumulation of 1 million ounces in just one month was one of the more sizeable monthly purchases by China and equates to 31.1 metric tonnes in August alone.

The value of the bank's holdings rose to $47.68 billion from $44.96 billion a month earlier, Russia said in a statement on its website.

The amount bought was more than the 30.5 metric tons that Russia purchased in March, then the highest amount in six months. 

Russia is now the seventh biggest holder of gold reserves after the U.S, Germany, the IMF, Italy and France and the rising gold power China. Russia has  more than tripled its reserves since 2005 and holds the most gold bars since at least 1993, International Monetary Fund data shows.

Nations globally have been increasing their gold holdings in recent years, a reversal from two decades of selling. China, Kazakhstan, Ukraine and Belarus are among other nations that have been accumulating gold.

Gold remains a large part of many central banks’ reserves, decades after they stopped using it to back paper and the electronic currency of today.

Russia has been steadily buying bullion since 2007 and the advent of the global financial crisis. Russia was accumulating gold even prior to tensions with the West and international sanctions over the Ukrainian conflict. 

Gold has protected the Russian reserves and acted as a hedge as gold priced in rubles has surged over 60 percent in the last 12 months. The plunge in oil prices contributed to sharp falls in the ruble.

Russia added about 13 tons in July and 24 tons the month before that. As tensions escalate with the U.S., the UK and the EU, Russia appears to be intensifying efforts to diversify out of their large dollar holdings and into physical gold.




DAILY PRICES
Today’s Gold Prices: USD 1136.85, EUR 1007.27 and GBP 732.86 per ounce.
Friday’s Gold Prices: USD 1136.00, EUR 992.31 and GBP 726.25 per ounce.
(LBMA AM)

Gold had a 3 percent weekly gain and silver had a 3.5% weekly gain. Gold ended with a gain of 0.73% on Friday while silver rose to as high as $15.43 before ending with a gain of 0.26%.

Read more on the GoldCore.com blog


IMPORTANT NEWS

Gold hovers near 3-week high as equities slip – Reuters
Gold Has First Weekly Gain in a Month After Fed Holds Rates – Bloomberg
Gold at near 3-week high as Fed rate decision weighs on equities – Reuters
Asian shares slump on global growth concerns, U.S. selloff – Reuters
Volkswagen Plunges 17% After U.S. Emissions Cheat Scandal – Bloomberg TV

IMPORTANT COMMENTARY

Now Is Time To Get Into Gold? – Bloomberg TV
Negative interest rates could be necessary to protect UK economy – The Telegraph
Sardinia’s privately created local currency endures after six years – Financial Times
What Keynes Would Think of ‘Neo-Keynesians’ – Wall Street Journal
Saxobank CIO Prefers Gold Amid Increased Uncertainty – Zero Hedge

Read more News & Commentary from GoldCore.com

 

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